Procure To Pay (P2P) Internal audit - General Data analytics - Part I

 Hi everyone, in this article you can find the common data analytics that can be performed in internal audit of Procure To Pay (P2P) process. The entire article contains around 30 key data analytics w.r.t P2P process in two parts (part I &II).

 

ALSO READ PART II HERE

• To check if there are incorrect or incomplete details in vendor master

To check if there are any incomplete /  incorrect details in the following fields

• Supplier name
• Address (street, city, district)
• Telephone
• Bank Details

 

• To check if there are any incomplete / incorrect statutory details in vendor master

To check if there are any discrepancies in statutory details like

• Invalid PAN
• GST number not updated
• Invalid GST
• PAN in GST number is not matching with PAN submitted
• State code in GST number is not matching with state code of address given
• PAN not updated

 

• To check if there are any duplicate vendor codes in supplier master data

To check if there are any duplicate supplier accounts created to be identified with the following logic

• Output 1 (High probability) - supplier name + company code + same bank details + same address
• Output 2 (Medium probability) - Supplier name + company code + same address
• Output 3 (Low probability) - Supplier name + Company code

 

 

• To check payroll employees matching with the vendor master 

To check if there is any supplier account created with the employee details matching with the below combinations

• Output 1 - Name match
• Output 2 - Address match
• Output 3 - Bank details match
• Output 4 - PAN details match

 

• To check vendors with negative balance

List of vendors with negative balance

 

• To check vendors with advances pending to be knocked off

 From the list of transactions identify advances paid but are pending to be knocked off against a corresponding invoice

 

• To identify list of vendors who have been block listed by various statutory authorities

Compare supplier list with the willful defaulters list published by RBI / FATF

 

• To check timely creation, approval, accuracy and completeness of purchase order

To check Turnaround time (TAT) of creation of purchase order (PO creation date vs PR approval date) 

 

• Purchase order profiling

Visualization  proving insights into the following

• Top suppliers
• Top materials 
• Movement of supplier cost over the period
• Number of Purchase orders
• Number of Open PO's
• User creating the PO and user approving the PO 

 

·        To check timely creation, approval, accuracy and completeness of purchase order

To check turnaround time of approving the purchase order. (PO approval date vs PO creation date)

 

·        To check timely creation, approval, accuracy and completeness of purchase order

Compare material wise PO details with PR, to check on the following discrepancies

• Total PO quantity of the material > PR quantity 

 

 

• PO created for cancelled / rejected / unapproved PR

To check whether PO has been created for cancelled / rejected / unapproved PR

 

• Unauthorized creation of PO

Compare the PO details with respective PR's to check on the following discrepancies

• Total PO quantity of the material < PR quantity

 

 

•  Purchase order raised without corresponding PR

To check if a PO was created without a corresponding Purchase requisition

 

• High unit price variations (trend analysis)
• Same material procured from same vendor at different price
• Same material procured from different vendors at different price 

 

ALSO READ PART II HERE